HOTELS have, despite the recent implementation of the Goods and Services Tax (GST) which did away with the Sales and Services Tax (SST), continue to impose the 10 per cent service charge on their customers. The adverse reaction of the latter is understandable given the belief that the practice of imposing a service charge is now illegal. The government, for its part, has admitted to an oversight in this respect. Those outlets collecting this service charge, however, claim that it is done in lieu of tips and is distributed as bonuses at the end of the year. However, there is no hard and fast rule ensuring that, ultimately, the benefits will accrue to the workers, who are nine times out of 10 not very well paid. Putrajaya, in attempting to resolve the problem, is considering a review of the salary of hotel workers on the one hand, while on the other, abolishing the service charge altogether to appease the public.
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